Twinning Project

Objectives and purposes of the project

Azerbaijan's Agriculture Sector employs 38% of the working population, contributes 6.8% to GDP and 6.2% to export earnings. Comparatively low productivity and resource efficiency in the sector which is dominated by small holdings offer potential for growth if addressed in a sustainable manner. The sector receives therefore increased attention under the Government of Azerbaijan economic diversification programme. Current agricultural policy focuses amongst others on strengthening sector support services including e-government services, improving the targeting of state support, accelerating know how transfer, promoting cooperation in the smallholder sector and improving transparency, efficiency and effectiveness of overall sector governance.

The overall objective of this twinning project is to support the Ministry of Agriculture to improve the effectiveness and efficiency of the state support system for agriculture and rural development and so help in implementing the Government policy on diversification of the economy, decreasing regional disparities and improving rural livelihoods.

The specific objective of the twinning project is to strengthen the capacity of the Ministry of Agriculture to define, programme and administer effective state support to agriculture and for rural development and in line with relevant EU policy principles and best practices.

Expected results

• Strengthened Ministry of Agriculture Capacity in Subsidy Policy Analysis, Formulation, Monitoring and Evaluation. This will include proposals for moving more state support to decoupled support (green box measures) and provide tools for linking subsidies to good agricultural practice.
• Improved MoA Capacity for Rural Development Programming and Implementation. This will provide exposure to EU rural development - policy, - programming and implementation practise including its monitoring and evaluation. One focus being on developing rural development measures in support of environmental protection and co-operation in agriculture. 
• Enhanced MoA capacity for transparent and effective administration and control of subsidy payments. This will include the further development of Azerbaijan's Information System for Subsidy Policy (ISSP)  - and its linkages with other emerging electronic information and decision support systems under development by the agricultural administration.

Three Components

Component 1: Strengthened Ministry of Agriculture Capacity in Subsidy Policy Analysis, Formulation, Monitoring, Reporting and Evaluation

Component 1 is aimed to review the Azerbaijan state subsidies to support producers and processors of agricultural products to improve quality, food safety and cooperation in order to increase farmers income

Component 2:  Improved MoA Capacity for Rural Development Programming and Implementation

Component 2 is aimed to introduce EU rural development policy principles in order to contribute to regional and rural development improving rural economy and livelihoods

Component 3:  Enhanced MoA capacity for transparent and effective administration and control of subsidy payments

Component 3 is aimed to enhance the use of Integrated Administration and Control System IACS for a consistent management of agriculture subsidies.